It is too easy to accrue knowledge
about something but implications part most difficult, so I share my knowledge
and my working experiences of the financial market, how to implement your
knowledge into real world.
There are few methods to analyse
securities and financial instruments to make investment or trading decisions
like fundamental analysis, technical analysis, quantitative analysis, economic
analysis, news analysis but basically fundamental and technical analysis are in
use.
Fundamental analysis is
used to analyzing the characteristics of a company in order to
valuations, future growth, P&L analysis, excel modelling, calculations
and impacts of govt. policy’s and many more things on the list, basically this
analysis are used for the Long-term investment decisions, you could make lots
of money with this but long term investments are comes from reserve and surplus
funds, if you have it go for it.
Technical analysis is
completely different from the fundamental analysis. In case of technical
analysis is for the hourly, daily, weekly traders basically for the short term
trader and investor, if you need regular income from securities markets you
need to learn about technical analysis, Technical analysis doesn’t care value
of the company, it’s all about understand demand and supply and interested in
price movement in the market, understand the trend and directions of the
Stocks, Forex and Commodities into the charts.
To understand the demand and supply,
trend we have to use some chart pattern, tools, Techniques, indicator, oscillator,
support and resistance and moving averages many more.
In technical analysis field some
rules are important like
i) Market
can discount everything
ii) History
repeats itself
iii) Sometime
history not repeating itself
iv) Trend
is your friend
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